Is There Such A Thing As Guaranteed Mobile Phone Contracts?
If you live in the UK, you probably have come across a number of providers claiming to offer guaranteed mobile phone contracts. Considering the fact that credit checks have become the cornerstone of mobile phone contracts, it is understandable why many people might find the idea of a guaranteed mobile phone contract a bit exaggerated or blown out of proportion. When you approach any of the providers in UK for a mobile phone contract, there are usually a number of things that they take into consideration. For starters, they consider your credit rating. Secondly, they consider whether you are employed or not, the type of handset you are interested in and they also consider the cost you will be paying on a monthly basis.
Credit rating after all plays a very important role in determining whether you will be approved for a mobile phone contract or not. Having said that, is there such a thing as guaranteed mobile phone contracts? Can a person with a poor credit rating apply for a mobile phone contract and be assured of being approved without his credit score becoming a hindrance? As unbelievable as some people might find this, there are indeed a number of providers that offer guaranteed mobile phone contracts to people with bad credit. However, the downside is that such people do not enjoy the perks as people with a good health history do.
Most of the time, they are forced to go for refurbished or new mid range handsets as providers are seeking to lower the risk as much as possible. Providers do not want a situation where they have to deal with losses due to a person’s history of defaults. Secondly, people who are approved for these kinds of contracts are expected to pay an upfront payment. This is money that is held by the lender and is mostly returned on expiry of the contract provided that the applicant made all his predetermined monthly payments and that their account is in good standing.
Thirdly, people who get approved for guaranteed mobile phone contracts are required to be committed to a longer contract period as compared to people with a healthy history. The idea again is for the provider to mitigate and minimize risk on their part. In view of the above, what are some of the things that people with a poor credit rating can do to ensure that they are always approved for guaranteed mobile phone contracts? Contrary to popular belief, most guaranteed mobile phone contracts are actually rejected due to errors of commission and omission and not credit checks.
Providing wrong information can easily get a person to be rejected. It’s therefore important to ensure that all the personal details you provide are the correct information. Alternatively, you can also provide a guarantor which is a sure way of ensuring that your application gets approved. Thirdly, pay an upfront payment. Upfront payments tend to reduce the risk on the part of the provider which is pretty much a better way of ensuring that you get paid. That notwithstanding, there are indeed a number of providers that offer guaranteed mobile phone contracts. The only disadvantage as the perks enjoyed might not be as attractive as those with a stellar credit score.